AN ACT Relating to contractors; amending RCW 60.04.020, 60.04.230, 18.27.200, 18.27.210, 18.27.230, 18.27.310, and 18.27.320; adding a new section to chapter 60.04 RCW; and prescribing penalties.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. Section 1, chapter 45, laws of 1909 as last amended by section 4, chapter 202, Laws of 1984 and RCW 60.04.020 are each amended to read as follows:

Every person, firm or corporation furnishing materials or supplies or renting, leasing or otherwise supplying equipment, to be used in the construction, alteration or repair of any mining claim, building, wharf, bridge, ditch, dyke, flume, tunnel, well, fence, machinery, railroad, street railway, wagon road, aqueduct to create hydraulic power, or any other building, or any other structure, or mining claim or stone quarry, shall give to the owner or reputed owner of the property on, upon or about which such materials or supplies or equipment is and/or were used, a notice in writing, which notice shall cover the material, supplies or equipment furnished or leased during the sixty days preceding the giving of such notice as well as all subsequent materials, supplies or equipment furnished or leased, stating in substance and effect that such person, firm or corporation is and/or has furnished materials and supplies, or equipment for use thereon, with the name of the contractor or agent ordering the same, and that a lien may be claimed for all materials and supplies, or equipment furnished by such person, firm or corporation for use thereon, which notice shall be given to the owner or reputed owner by (1) mailing the same by registered or certified mail in an envelope addressed to the owner or reputed owner at his place of residence or reputed residence, or (2) by serving the same personally upon the owner or reputed owner and obtaining evidence of such service in the form of a receipt or other acknowledgment signed by such owner or reputed owner, and (3) if the prime contractor complies with RCW 60.04.230, the notice shall also be given to the prime contractor as defined in RCW 60.04.200(6) by (a) any form of mail requiring a return receipt or (b) by serving the notice personally upon the prime contractor or the prime contractor's representative and obtaining evidence of such service in the form of a receipt or other acknowledgement signed by the prime contractor or the prime contractor's representative: PROVIDED, HOWEVER, That with respect to materials ((or)), supplies ((or)), equipment ((~~used in~~)), or labor furnished for the construction, alteration or repair of any single family residence or garage such notice must be given not later than ten days after the date of the first delivery of such materials ((or)), supplies, or equipment, or commencement of the labor. No ((~~materialmen's~~)) lien for labor, materials, supplies, or equipment shall be enforced unless the provisions of this section have been complied with: PROVIDED, That in the event the notice required by this section is not given within the time specified by this section, any lien or claim of lien shall be enforceable only for materials and supplies or equipment delivered subsequent to such notice being given to the owner or reputed owner, and such lien or claim of lien shall be secondary to any lien or claim of lien established where such notice was given within the time limits prescribed by this section.

Sec. 2. Section 3, chapter 202, Laws of 1984 and RCW 60.04.230 are each amended to read as follows:

(1) For any construction project costing more than five thousand dollars where the primary use of the improvements on the real property is for one or more residences the prime contractor shall post in plain view for the duration of the construction project a legible notice at the construction job site containing the following:

(a) The legal description, the street address if available, and any other identification of the construction site by the prime contractor;

(b) The property owner's name, address, and phone number;

(c) The prime contractor's business name, address, phone number, current state contractor registration number and identification; and

(d) Either:

(i) The name, address, and phone number of the office of the lender administering the interim construction financing; or

(ii) The name and address of the firm that has issued a payment bond on behalf of the prime contractor for the protection of the owner if the bond is for an amount not less than fifty percent of the total amount of the construction project.

(2) For any construction project not subject to subsection (1) of this section costing more than five thousand dollars, the prime contractor shall post in plain view for the duration of the construction project a legible notice at the construction job site containing the following:

(a) The legal description or the street address and any other identification of the construction site by the prime contractor;

(b) The property owner's name, address, and phone number;

(c) The prime contractor's business name, address, phone number, current state contractor registration number and identification.

(3) Failure to comply with this section is a ((~~gross misdemeanor~~)) violation of chapter 18.27 RCW. Penalties for such failures to comply shall be imposed in accordance with that chapter.

Sec. 3. Section 1, chapter 2, Laws of 1983 1st ex. sess. and RCW 18.27.200 are each amended to read as follows:

(1) An offer to do work, submission of a bid, or performance of any work by a contractor who is not registered with the department of labor and industries as required by this chapter is an infraction. Each day that a contractor works without being registered as required by this chapter is a separate infraction. Each worksite at which a contractor works without being registered as required by this chapter is a separate infraction.

(2) Failure to post a construction jobsite notice as required by RCW 60.04.230 is an infraction. Each day the contractor works at a jobsite without having posted the required notice is a separate infraction.

Sec. 4. Section 2, chapter 2, Laws of 1983 1st ex. sess. as last amended by section 2, chapter 419, Laws of 1987 and RCW 18.27.210 are each amended to read as follows:

(1) The director shall appoint compliance inspectors to investigate alleged or apparent violations of this chapter. The director, or authorized compliance inspector, upon presentation of appropriate credentials, may inspect and investigate job sites at which a contractor had bid or presently is working to determine whether the contractor is registered in accordance with this chapter or the rules adopted under this chapter, and whether the contractor has complied with the jobsite notice posting requirements under RCW 60.04.230. Upon request of the compliance inspector of the department, a contractor or an employee of the contractor shall provide information identifying the contractor.

(2) If the employee of an unregistered contractor is cited by a compliance inspector, that employee is cited as the agent of the employer-contractor, and issuance of the infraction to the employee is notice to the employer-contractor that the contractor is in violation of this chapter. An employee who is cited by a compliance inspector shall not be liable for any of the alleged violations contained in the citation unless the employee is also the contractor.

Sec. 5. Section 3, chapter 2, Laws of 1983 1st ex. sess. as amended by section 3, chapter 197, Laws of 1986 and RCW 18.27.230 are each amended to read as follows:

The department may issue a notice of infraction if the department reasonably believes that the contractor required to be registered by this chapter, or who is required to post a jobsite notice as required under RCW 60.04.230, has failed to do so. A notice of infraction issued under this section shall be personally served on the contractor named in the notice by the department's compliance inspectors or service can be made by certified mail directed to the contractor named in the notice of infraction. If the contractor named in the notice of infraction is a firm or corporation, the notice may be personally served on any employee of the firm or corporation. If a notice of infraction is personally served upon an employee of a firm or corporation, the department shall within four days of service send a copy of the notice by certified mail to the contractor if the department is able to obtain the contractor's address.

Sec. 6. Section 9, chapter 2, Laws of 1983 1st ex. sess. as amended by section 8, chapter 197, Laws of 1986 and RCW 18.27.310 are each amended to read as follows:

(1) The administrative law judge shall conduct contractors' notice of infraction cases pursuant to chapter 34.04 RCW.

(2) The burden of proof is on the department to establish the commission of the infraction by a preponderance of the evidence. The notice of infraction shall be dismissed if the defendant establishes that, at the time the notice was issued, the defendant was registered by the department or was exempt from registration, or in the case of a violation of RCW 60.04.230, the required jobsite notice was posted.

(3) After consideration of the evidence and argument, the administrative law judge shall determine whether the infraction was committed. If it has not been established that the infraction was committed, an order dismissing the notice shall be entered in the record of the proceedings. If it has been established that the infraction was committed, the administrative law judge shall issue findings of fact and conclusions of law in its decision and order determining whether the infraction was committed.

(4) An appeal from the administrative law judge's determination or order shall be to the superior court. The decision of the superior court is subject only to discretionary review pursuant to Rule 2.3 of the Rules of Appellate Procedure.

Sec. 7. Section 13, chapter 2, Laws of 1983 1st ex. sess. as amended by section 9, chapter 197, Laws of 1986 and RCW 18.27.320 are each amended to read as follows:

The administrative law judge shall dismiss the notice of infraction at any time upon written notification from the department that the contractor named in the notice of infraction was registered, or that the required jobsite notice was posted, at the time the notice of infraction was issued.

NEW SECTION. Sec. 8. A new section is added to chapter 60.04 RCW to read as follows:

(1) This section applies only to contracts for the alteration, repair, or construction of single-family residences and appurtenant garages.

(2) Whenever payment becomes due from the owner, or whenever the original contractor desires to draw money from the owner pursuant to their contract, or whenever any mortgagee makes a written demand, the contractor shall provide a statement under oath, showing the name and address of every laborer in his or her employ who has not been paid in full, and of every subcontractor who has furnished labor or material for the improvement, and of every person furnishing machinery, material, fuel, or equipment, and showing the amount due or to become due for the work done on material, supplies, or equipment furnished. The statement shall be accompanied by an affidavit given by every person named in the statement. The statements shall be in substantially the following form:

@bcAffidavit of contractor

@ec !sc ,1@be!sc ,3(Name)!sc ,3@ee, being first duly sworn, says that he or she is !sc ,1@be!sc ,3(office, title)!sc ,3@ee!sc ,1 of !sc_,15, the contractor having a contract with !sc ,1@be!sc ,5(owner)!sc ,5@ee!sc ,1 for !sc ,1@be!sc ,3(alteration, construction, etc.)!sc ,3@ee!sc ,1 of a single-family residence or appurtenant garage located at !sc ,1@be!sc ,3(legal or other definite description)!sc ,3@ee.

Affiant further says that the following shows the names and addresses of every subcontractor in the employ of the original contractor for the execution of the contract. @be[NOTE: @eeThis statement must be accompanied by a similar sworn statement given by each of the subcontractors listed below]:

!tp1,1,1,1 !tj2!tlAmount!sc ,1due

!sc ,4Name!tlAddress!tlTrade!tlor!sc ,1to!sc ,1become

!tj2!tldue

!w_

Affiant further says that the following shows the names and addresses of every person furnishing material, supplies, or equipment to !sc ,1@be!sc ,3(contractor)!sc ,3@ee!sc ,1 in furtherance of the execution of the contract.

!tp1,1,1,1 !tj2!tlAmount!sc ,1due

!sc ,4Name!tlAddress!tlItems!sc ,1supplied!tlor!sc ,1to!sc ,1become

!tj2!tldue

!w_

Affiant further says that the following shows the names and addresses of every laborer in the employ of !sc ,1@be!sc ,3(contractor)!sc ,3@ee!sc ,1 who has furnished labor in furtherance of the execution of the contract who has not been fully paid:

!tp1,1,1,1 !tj1!tlAmount!sc ,1due!sc ,1or!sc ,1to

!sc ,4Name!tlAddress!tlbecome!sc ,1due!sc ,1for

!tj1!tllabor!sc ,1furnished!sc ,1to!sc ,1date

!w_

Affiant says that !sc ,1@be!sc ,3(contractor)!sc ,3@ee!sc ,1 has not employed or purchased or procured supplies, material, or equipment, or subcontracted with any person, firm, or corporation, other than those listed above, and owes for no labor performed, or material, supplies, or equipment furnished other than as set forth above.

!tp1,1 !tl!w_

!tlSignature

@p4 !ixCOUNTY!sc ,1OF!sc ,1 .......... !ttü

!tlý!sc ,1ss.

!ixSTATE!sc ,1OF!sc ,1WASHINGTON!sc ,2_

@p0 Subscribed and sworn before me this .......... day of .......... , 19.. .

!tp1,1 !tl!w_

!tlNotary!sc ,1Public

AFFIDAVIT OF (Materialman, Subcontractor, or Laborer)

!sc ,1@be!sc ,3(Name)!sc ,3@ee, being first duly sworn, says that to date !sc ,1@be!sc ,3(individual or firm)!sc ,3@ee!sc ,1 has furnished !sc ,1@be!sc ,3(hours of labor, material, equipment, supplies, performed subcontract or portion thereof)!sc ,3@ee!sc ,1 for the construction, alteration, or repair of a residence or appurtenant garage located at !sc ,1@be!sc ,3(legal or other clear description of property)!sc ,3@ee; that !sc ,1@be!sc ,3(labor, material, etc.)!sc ,3@ee!sc ,1 was performed/supplied on !sc ,1@be!sc ,3(date(s))!sc ,3@ee, and the amount due or to become due is !sc_,10.

!tp1,1 !tl!w_

!tlSignature

@p4 !ixCOUNTY!sc ,1OF!sc ,1 .......... !ttü

!tlý!sc ,1ss.

!ixSTATE!sc ,1OF!sc ,1WASHINGTON!sc ,2_

@p0 Subscribed and sworn before me this .......... day of .......... , 19.. .

!tp1,1 !tl!w_

!tlNotary!sc ,1Public